Does it matter who was at fault for ACT car accident compensation

Published 18 Jan 2019

Author: Nassir Bechara

After a motor vehicle accident, who the court determines is at fault matters. The Australian Capital Territory (ACT) requires that every registered vehicle owner has Compulsory Third-Party Insurance (CTP) in the event that they cause an accident that injures other people.

What follows is a look at what CTP insurance is and how it works.

What does CTP insurance cover?

CTP is a type of premium that is a requirement in the ACT. You pay for CTP insurance when you register your vehicle.

The purpose of CTP is to cover those injured in a car accident if the crash is your fault. It also could apply if someone who is driving your car is at fault. Injured parties may be other passengers, pedestrians or cyclists on the road – whoever is involved in the accident.

However, CTP does not cover your injuries if the accident was your fault. If the court finds that no one is at fault, CTP will not cover injuries. For instance, if you hit an animal on the road.

An important note is that CTP doesn’t cover damage to property, just personal injuries.

What if you’re injured and an accident isn’t your fault?

If you were injured in an accident and it was someone else’s fault, that person’s CTP insurance would then cover your expenses. Injury-related costs that CTP covers could be:

  • Medical costs.
  • Lost income.
  • Pain or suffering.

However, if you could have prevented the injury somehow, even if the accident was someone else’s fault, the benefits you receive may be reduced. An example would be if you weren’t wearing your seatbelt, and that fact contributed to the injury.

What if someone doesn’t have CTP insurance?

If a person is at fault for an accident that injures you and they don’t have CTP insurance, they’ll be responsible for covering your injury expenses and related costs. This is the reason the ACT has made the premiums compulsory, so that everyone is covered should such an event take place.